Government Operations Results for August 2018

Date: October 1, 2018

For the period of April 2018 to August 2018, the GOJ reported Total Revenues & Grants of $229.97 billion, $6.18 billion more than the Government’s projection. Furthermore, year over year, this represents an increase of approximately 7.9% relative to the $213.07 billion recorded for the corresponding period in 2017. ‘Tax Revenue’, ‘Non-Tax Revenues’ and ‘Capital Revenue’ outperformed projections while and ‘Grants’ underperformed projections during the review period. ‘Tax Revenue’ amounted to $207.86 billion, $7.17 billion more than budgeted, while ‘Non-Tax Revenue’ of $19.31 billion was reported; $1.56 billion more than budgeted. ‘Grants’ underperformed budget by $2.85 billion, amounting to $2.24 billion during the review period, while ‘Capital Revenue’ totalled $562.7 million, $293.7 million or 109.2% more than budgeted. Notably, no provisional amount was booked for ‘Bauxite Levy’ for the review period.

Expenditures

Total Expenditure for the period April 2018 to August 2018 amounted to $243.28 billion, $5.94 billion or 2.4% less than the budgeted $249.22 billion. Recurrent expenditure which totalled $218.85 billion, accounted for 89.96% of overall expenditures. Relative to projections, recurrent expenditure was $8.78 billion (3.9%) less than budgeted. Of the recurrent expenditure categories over the review period, all categories came in below budget. ‘Programmes’ which amounted to $80.30 billion was $2.88 billion or 3.5% less than projected, while ‘Employee Contribution’ which amounted to $7.03 billion for the period was under budget by 11% relative to the budgeted $7.90 billion. ‘Compensation of Employees’ which amounted to $83.16 billion was $1.58 billion or 1.9% less than projected, while ‘Wages & Salaries’ amounted to $76.13 billion and was $708.6 million or 0.9% less than projected.

As a result of the decrease in Expenditures for the period April 2018- August 2018, the ‘Fiscal Deficit’ was $13.31 billion, relative to a projected deficit of $25.42 billion. Additionally, the primary balance for the period amounted to $42.09 billion, 22.7% more than budgeted.

As part of the Memorandum of Economic and Financial Policies (MEFP), the GOJ estimates that the primary balance, as a performance criterion, should amount to $141.1 billion by the end of the 2018/2019 fiscal year. For the September quarter, a primary balance of $44.0 billion is estimated. As at the end of August 2018, this amounted to $42.09 billion. Tax Revenue is expected to total an estimated $234.0 billion by the end of the September quarter. The reported tax revenue for the end of August 2018 was $207.86 billion.

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